Pandora has revealed that its royalty payments to SoundExchange, the US licensing body which collects performance royalties on behalf of record labels and artists, have just increased by 8%.
The news was confirmed in a call with investors following Pandora’s Q1 fiscal results announcement on Thursday (April 23), in which it posted a three-month net loss of $48.3m.
In what Pandora CEO Brian McAndrews (pictured) called a “scheduled annual step-up”, Pandora has from January 1 been paying out an average $0.0014 per ad-funded stream and $0.0024 per premium stream to SoundExchange.
An 8% rise in SoundExchange royalties might sound impressive, but in per-stream terms, it’s a micro-increase: up $0.0001 from $0.0013 (ad-funded) and $0.0023 (premium) in 2014.
In Q1 2015, Pandora pulled in $52m in subscription income, down on the $53.7m it accrued in the same period of 2014.